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Williams Companies

NYSE:WMB
Snowflake Description

Average dividend payer with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WMB
NYSE
$33B
Market Cap
  1. Home
  2. US
  3. Energy
Company description

The Williams Companies, Inc. operates as an energy infrastructure company primarily in the United States. The last earnings update was 53 days ago. More info.


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WMB Share Price and Events
7 Day Returns
0.4%
NYSE:WMB
4.6%
US Oil and Gas
2%
US Market
1 Year Returns
0.9%
NYSE:WMB
-15.2%
US Oil and Gas
4.3%
US Market
WMB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Williams Companies (WMB) 0.4% 0.6% -5.1% 0.9% 35.8% -53.4%
US Oil and Gas 4.6% 3% -3.6% -15.2% -1.1% -37.1%
US Market 2% 4.1% 4.2% 4.3% 43.9% 40.8%
1 Year Return vs Industry and Market
  • WMB outperformed the Oil and Gas industry which returned -15.2% over the past year.
  • WMB underperformed the Market in United States of America which returned 4.3% over the past year.
Price Volatility
WMB
Industry
5yr Volatility vs Market

WMB Value

 Is Williams Companies undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Williams Companies to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Williams Companies.

NYSE:WMB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:WMB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.92
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.919 (1 + (1- 21%) (71.43%))
1.293
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.29
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.293 * 5.96%)
10.44%

Discounted Cash Flow Calculation for NYSE:WMB using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Williams Companies is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:WMB DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.44%)
2019 1,651.40 Analyst x1 1,495.34
2020 1,721.33 Analyst x3 1,411.37
2021 2,009.10 Analyst x1 1,491.65
2022 2,413.60 Analyst x1 1,622.62
2023 3,056.30 Analyst x1 1,860.53
2024 3,491.74 Est @ 14.25% 1,924.73
2025 3,868.57 Est @ 10.79% 1,930.93
2026 4,192.51 Est @ 8.37% 1,894.86
2027 4,472.59 Est @ 6.68% 1,830.42
2028 4,718.37 Est @ 5.5% 1,748.53
Present value of next 10 years cash flows $17,210.98
NYSE:WMB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $4,718.37 × (1 + 2.73%) ÷ (10.44% – 2.73%)
$62,898.68
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $62,898.68 ÷ (1 + 10.44%)10
$23,308.90
NYSE:WMB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $17,210.98 + $23,308.90
$40,519.89
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $40,519.89 / 1,211.77
$33.44
NYSE:WMB Discount to Share Price
Calculation Result
Value per share (USD) From above. $33.44
Current discount Discount to share price of $27.15
= -1 x ($27.15 - $33.44) / $33.44
18.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Williams Companies is available for.
Intrinsic value
19%
Share price is $27.15 vs Future cash flow value of $33.44
Current Discount Checks
For Williams Companies to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Williams Companies's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Williams Companies's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Williams Companies's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Williams Companies's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:WMB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $-0.11
NYSE:WMB Share Price ** NYSE (2019-06-24) in USD $27.15
United States of America Oil and Gas Industry PE Ratio Median Figure of 102 Publicly-Listed Oil and Gas Companies 13.72x
United States of America Market PE Ratio Median Figure of 3,095 Publicly-Listed Companies 17.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Williams Companies.

NYSE:WMB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:WMB Share Price ÷ EPS (both in USD)

= 27.15 ÷ -0.11

-254.74x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Williams Companies is loss making, we can't compare its value to the US Oil and Gas industry average.
  • Williams Companies is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Williams Companies's expected growth come at a high price?
Raw Data
NYSE:WMB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -254.74x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
15.3%per year
United States of America Oil and Gas Industry PEG Ratio Median Figure of 79 Publicly-Listed Oil and Gas Companies 0.39x
United States of America Market PEG Ratio Median Figure of 2,134 Publicly-Listed Companies 1.54x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Williams Companies, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Williams Companies's assets?
Raw Data
NYSE:WMB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $11.87
NYSE:WMB Share Price * NYSE (2019-06-24) in USD $27.15
United States of America Oil and Gas Industry PB Ratio Median Figure of 197 Publicly-Listed Oil and Gas Companies 1.03x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.8x
NYSE:WMB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:WMB Share Price ÷ Book Value per Share (both in USD)

= 27.15 ÷ 11.87

2.29x

* Primary Listing of Williams Companies.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Williams Companies is overvalued based on assets compared to the US Oil and Gas industry average.
X
Value checks
We assess Williams Companies's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Williams Companies has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

WMB Future Performance

 How is Williams Companies expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
15.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Williams Companies expected to grow at an attractive rate?
  • Williams Companies's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Williams Companies's earnings growth is expected to exceed the United States of America market average.
  • Williams Companies's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:WMB Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:WMB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 15.3%
NYSE:WMB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 5.2%
United States of America Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 13%
United States of America Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:WMB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:WMB Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 11,470 4,930 1,635 1
2022-12-31 10,033 4,714 1,643 2
2021-12-31 9,678 4,350 1,590 6
2020-12-31 9,452 3,926 1,497 11
2019-12-31 8,757 3,748 1,278 8
NYSE:WMB Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 8,652 3,374 -114
2018-12-31 8,686 3,293 -156
2018-09-30 8,710 2,656 2,103
2018-06-30 8,298 2,615 2,007
2018-03-31 8,131 3,056 1,953
2017-12-31 8,031 3,089 2,174
2017-09-30 8,001 3,814 472
2017-06-30 8,015 3,737 500
2017-03-31 7,827 3,624 14
2016-12-31 7,499 4,155 -424
2016-09-30 7,307 2,689 -1,124
2016-06-30 7,201 2,664 -1,225

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Williams Companies's earnings are expected to grow by 15.3% yearly, however this is not considered high growth (20% yearly).
  • Williams Companies's revenue is expected to grow by 5.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:WMB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Williams Companies Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:WMB Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 1.23 1.38 0.86 5.00
2020-12-31 1.19 1.65 0.93 9.00
2019-12-31 1.03 1.67 0.82 9.00
NYSE:WMB Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 -0.11
2018-12-31 -0.16
2018-09-30 2.40
2018-06-30 2.43
2018-03-31 2.36
2017-12-31 2.63
2017-09-30 0.58
2017-06-30 0.63
2017-03-31 0.02
2016-12-31 -0.56
2016-09-30 -1.50
2016-06-30 -1.63

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Williams Companies is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Williams Companies's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Williams Companies has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

WMB Past Performance

  How has Williams Companies performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Williams Companies's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Williams Companies does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Williams Companies's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Williams Companies's 1-year growth to the US Oil and Gas industry average as it is not currently profitable.
Earnings and Revenue History
Williams Companies's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Williams Companies Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:WMB Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 8,652.00 -114.00 568.00
2018-12-31 8,686.00 -156.00 574.00
2018-09-30 8,710.00 2,103.00 603.00
2018-06-30 8,298.00 2,007.00 579.00
2018-03-31 8,131.00 1,953.00 628.00
2017-12-31 8,031.00 2,174.00 656.00
2017-09-30 8,001.00 472.00 567.00
2017-06-30 8,015.00 500.00 609.00
2017-03-31 7,827.00 14.00 636.00
2016-12-31 7,499.00 -424.00 716.00
2016-09-30 7,307.00 -1,124.00 738.00
2016-06-30 7,201.00 -1,225.00 730.00
2016-03-31 7,304.00 -706.00 734.00
2015-12-31 7,360.00 -571.00 683.00
2015-09-30 7,495.00 337.00 670.00
2015-06-30 7,765.00 2,055.00 648.00
2015-03-31 7,604.00 2,040.00 620.00
2014-12-31 7,637.00 2,110.00 609.00
2014-09-30 7,156.00 1,904.00 558.00
2014-06-30 6,710.00 368.00 541.00
2014-03-31 6,799.00 419.00 530.00
2013-12-31 6,860.00 441.00 512.00
2013-09-30 7,069.00 605.00 508.00
2013-06-30 7,198.00 615.00 515.00
2013-03-31 7,277.00 598.00 525.00
2012-12-31 7,486.00 723.00 522.00
2012-09-30 7,720.00 641.00 503.00
2012-06-30 7,940.00 747.00 489.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Williams Companies has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Williams Companies used its assets less efficiently than the US Oil and Gas industry average last year based on Return on Assets.
  • It is difficult to establish if Williams Companies improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Williams Companies's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Williams Companies has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

WMB Health

 How is Williams Companies's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Williams Companies's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Williams Companies's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Williams Companies's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Williams Companies's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Williams Companies Company Filings, last reported 2 months ago.

NYSE:WMB Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 15,725.00 23,278.00 43.00
2018-12-31 15,997.00 22,414.00 168.00
2018-09-30 16,959.00 22,265.00 42.00
2018-06-30 15,447.00 21,315.00 275.00
2018-03-31 15,903.00 21,880.00 1,292.00
2017-12-31 16,175.00 20,935.00 899.00
2017-09-30 14,882.00 21,069.00 1,172.00
2017-06-30 15,181.00 23,276.00 1,918.00
2017-03-31 15,409.00 21,825.00 639.00
2016-12-31 14,046.00 23,502.00 170.00
2016-09-30 14,224.00 24,719.00 77.00
2016-06-30 14,422.00 25,376.00 135.00
2016-03-31 15,624.00 24,812.00 164.00
2015-12-31 16,225.00 24,486.00 100.00
2015-09-30 18,260.00 23,712.00 125.00
2015-06-30 19,171.00 23,406.00 204.00
2015-03-31 19,581.00 22,491.00 341.00
2014-12-31 20,172.00 21,577.00 240.00
2014-09-30 20,681.00 20,941.00 302.00
2014-06-30 11,922.00 16,290.00 860.00
2014-03-31 8,717.00 12,850.00 1,064.00
2013-12-31 8,921.00 11,578.00 681.00
2013-09-30 8,946.00 10,730.00 390.00
2013-06-30 7,971.00 11,069.00 381.00
2013-03-31 7,870.00 10,610.00 194.00
2012-12-31 7,427.00 10,734.00 839.00
2012-09-30 5,991.00 9,514.00 431.00
2012-06-30 5,627.00 9,037.00 101.00
  • Williams Companies's level of debt (148%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (147.3% vs 148% today).
  • Debt is not well covered by operating cash flow (14.5%, less than 20% of total debt).
  • Williams Companies is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess Williams Companies's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Williams Companies has a total score of 0/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

WMB Dividends

 What is Williams Companies's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.6%
Current annual income from Williams Companies dividends. Estimated to be 6.36% next year.
If you bought $2,000 of Williams Companies shares you are expected to receive $112 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Williams Companies's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Williams Companies's dividend is above the markets top 25% of dividend payers in United States of America (3.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:WMB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United States of America Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 67 Stocks 3.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2012 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:WMB Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 2.20 4.00
2022-12-31 2.00 5.00
2021-12-31 1.85 14.00
2020-12-31 1.67 19.00
2019-12-31 1.52 19.00
NYSE:WMB Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-09 1.520 5.576
2019-02-20 1.520 5.422
2018-11-08 1.360 5.468
2018-08-15 1.360 4.932
2018-05-10 1.360 4.865
2018-02-21 1.360 5.184
2017-11-16 1.200 3.979
2017-08-17 1.200 4.078
2017-05-18 1.200 3.992
2017-02-21 1.200 4.060
2017-02-15 1.200 4.210
2016-11-22 0.800 2.690
2016-08-19 0.800 2.700
2016-08-02 0.800 3.076
2016-06-08 2.560 11.510
2016-03-03 2.560 13.837
2015-11-19 2.560 12.701
2015-09-11 2.560 6.387
2015-05-21 2.360 4.594
2015-02-11 2.320 4.643
2014-11-18 2.280 4.975
2014-08-21 2.240 4.062
2014-05-22 1.700 3.119
2014-01-23 1.610 3.866
2013-11-21 1.520 4.091
2013-08-21 1.465 4.090
2013-05-16 1.410 4.099
2013-01-17 1.440 4.001
2012-11-15 1.300 3.987
2012-07-19 1.250 3.758
2012-05-17 1.200 4.060
2012-01-19 1.035 3.387
2011-09-06 1.000 3.475
2011-07-20 0.800 2.895
2011-04-26 0.800 2.646
2011-01-20 0.500 1.701
2010-11-18 0.500 2.057
2010-07-14 0.500 2.510
2010-04-27 0.500 2.474
2010-01-21 0.440 1.947
2009-11-19 0.440 2.105
2009-07-15 0.440 2.460

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Williams Companies's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (0.6x coverage).
X
Income/ dividend checks
We assess Williams Companies's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Williams Companies afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Williams Companies has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

WMB Management

 What is the CEO of Williams Companies's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Murray Armstrong
COMPENSATION $10,691,375
AGE 56
TENURE AS CEO 8.4 years
CEO Bio

Mr. Alan S. Armstrong, also known as Murray, has been Chief Executive Officer of Access Midstream Partners GP, L.L.C. since December 31, 2014. Mr. Armstrong has been the Chief Executive Officer and President of The Williams Companies, Inc. since January 3, 2011. He has been the Executive Chairman and Chief Executive Officer of WPZ GP LLC, the General Partner of Williams Partners L.P. since February 2, 2015 and December 31, 2014 respectively. He serves as the President of Midstream Gathering & Processing at The Williams Companies, Inc. He served as a Senior Vice President of Williams Field Services Company, LLC and Williams Field Services Group LLC. He serves as a Director of Marketing Services of Gulf Coast region of Field Services at Williams. He has been at Williams for 12 years. He served as Senior Vice President of Midstream at The Williams Companies, Inc. since February 2002 until 2011 and served as its Chairman since January 3, 2011. He is Chairman of the Board of ACMP since February 2, 2015. Mr. Armstrong served as the President for Williams Partners GP LLC and served as its Chief Operating Officer since February 2005 until February 2010 and Senior Vice President of Midstream since February 2010 until 2011. He served as Senior Vice President of Midstream Gas & Liquids at The Williams Companies, Inc. since February 2002, General Manager of Midstream since October 2002 and President of Midstream from February 2002 to January 2011. From 1999 to February 2002, he served as Vice President of Gathering and Processing of Midstream at Williams. Mr. Armstrong served as Vice President of Gathering and Processing from 1999 to 2002, Vice President of Commercial Development and Alliances from 1998 to 1999, Vice President of Retail Energy Services from 1997 to 1998 and Director of Commercial Operations, Field Services Gulf Coast of Williams from 1995 to 1997. He served at Williams since 1986 as an Engineer. He served as the Chairman of the Board at WPX Energy, Inc. from April 2011 to December 31, 2011 and served as its Director until December 31, 2011. Mr. Armstrong has been a Director at WPZ GP LLC since 2012. He has been a Director of The Williams Companies, Inc. since January 1, 2011. He is a Director and Executive Officer of certain affiliates of the WPZ General Partner. He has been a Director of BOK Financial Corporation since 2013. Mr. Armstrong has served as a director of the general partner of ACMP/WPZ since 2012. Mr. Armstrong is the Energy Division Chairman of the Tulsa United Way. He is a Member of the University of Oklahoma's College of Engineering Board of Visitors. He works at Center for the Physically Limited in Tulsa. He is a Trustee of Alan Stuart Armstrong Trust. He is a Board Member of Goodwill Industries, Junior Achievement, the Jenks Public School Foundation and The Williams Foundation, coaches’ youth sports. He serves at the American Society of Mechanical Engineers. He is a Federal Energy Regulatory Commission panel Speaker on gathering deregulation. Mr. Armstrong has spoken at numerous energy conferences and seminars, including the Gas Processors Association, Pipe Liner Clubs and the National Energy Association. He has also presented at the Canada Energy Symposium. He graduated from the University of Oklahoma in 1985 with a Bachelor's Degree in Civil Engineering.

CEO Compensation
  • Murray's compensation has increased whilst company is loss making.
  • Murray's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Williams Companies management team in years:

2.3
Average Tenure
51.5
Average Age
  • The tenure for the Williams Companies management team is about average.
Management Team

Murray Armstrong

TITLE
President
COMPENSATION
$11M
AGE
56
TENURE
8.4 yrs

John Chandler

TITLE
Senior VP & CFO
COMPENSATION
$4M
AGE
48
TENURE
1.8 yrs

Micheal Dunn

TITLE
Executive VP & COO
COMPENSATION
$5M
AGE
52
TENURE
2.3 yrs

Chad Zamarin

TITLE
Senior Vice President of Corporate Strategic Development
COMPENSATION
$4M
AGE
41
TENURE
2 yrs

Jim Scheel

TITLE
Senior Vice President of Northeast Gathering & Processing
COMPENSATION
$3M
AGE
53
TENURE
5.4 yrs

Ted Timmermans

TITLE
VP, Controller & Chief Accounting Officer
AGE
61
TENURE
13.9 yrs

John Porter

TITLE
Director

Brett Krieg

TITLE
Assistant Director Investor Relations

Terence Wilson

TITLE
Senior VP & General Counsel
AGE
51
TENURE
2.2 yrs

Debbie Cowan

TITLE
Senior VP & Chief Human Resource Officer
AGE
40
TENURE
0.7 yrs
Board of Directors Tenure

Average tenure and age of the Williams Companies board of directors in years:

2.8
Average Tenure
64.5
Average Age
  • The average tenure for the Williams Companies board of directors is less than 3 years, this suggests a new board.
Board of Directors

Steve Bergstrom

TITLE
Chairman of the Board
COMPENSATION
$505K
AGE
61
TENURE
2.1 yrs

Murray Armstrong

TITLE
President
COMPENSATION
$11M
AGE
56
TENURE
8.4 yrs

Kathleen Cooper

TITLE
Director
COMPENSATION
$306K
AGE
73
TENURE
12.8 yrs

Scott Sheffield

TITLE
Director
COMPENSATION
$290K
AGE
65
TENURE
2.8 yrs

Peter Ragauss

TITLE
Director
COMPENSATION
$315K
AGE
60
TENURE
2.8 yrs

Murray Smith

TITLE
Director
COMPENSATION
$295K
AGE
68
TENURE
7.4 yrs

Bill Spence

TITLE
Director
COMPENSATION
$305K
AGE
61
TENURE
2.8 yrs

Steve Chazen

TITLE
Director
COMPENSATION
$285K
AGE
71
TENURE
2.8 yrs

Casey Cogut

TITLE
Director
COMPENSATION
$285K
AGE
71
TENURE
2.5 yrs

Mike Creel

TITLE
Director
COMPENSATION
$275K
AGE
64
TENURE
2.5 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Williams Companies individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
30. May 19 Sell Ted Timmermans Individual 29. May 19 29. May 19 -5,000 $26.06 $-130,275
21. May 19 Buy Stephen Chazen Individual 20. May 19 20. May 19 10,000 $27.33 $273,275
21. Feb 19 Sell Kathleen Cooper Individual 19. Feb 19 19. Feb 19 -9,615 $27.39 $-263,360
30. Nov 18 Sell Kathleen Cooper Individual 29. Nov 18 29. Nov 18 -9,760 $25.60 $-249,856
06. Nov 18 Buy Chad Zamarin Individual 06. Nov 18 06. Nov 18 2,500 $25.69 $64,218
02. Nov 18 Buy Shio Chau Dunn Individual 02. Nov 18 02. Nov 18 2,500 $25.54 $63,842
02. Nov 18 Buy Michael Creel Individual 02. Nov 18 02. Nov 18 25,000 $25.78 $644,283
02. Nov 18 Buy John Chandler Individual 02. Nov 18 02. Nov 18 10,000 $25.94 $259,422
02. Nov 18 Buy Terence Wilson Individual 02. Nov 18 02. Nov 18 1,000 $25.75 $25,750
07. Aug 18 Sell Frank Ferazzi Individual 06. Aug 18 06. Aug 18 -1,100 $31.32 $-34,444
X
Management checks
We assess Williams Companies's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Williams Companies has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

WMB News

Simply Wall St News

Calculating The Fair Value Of The Williams Companies, Inc. (NYSE:WMB)

Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. … We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $1.65k $1.72k $2.01k $2.41k $3.06k $3.49k $3.87k $4.19k $4.47k $4.72k Growth Rate Estimate Source Analyst x1 Analyst x3 Analyst x1 Analyst x1 Analyst x1 Est @ 14.25% Est @ 10.79% Est @ 8.37% Est @ 6.68% Est @ 5.5% Present Value ($, Millions) Discounted @ 10.3% $1.50k $1.41k $1.50k $1.63k $1.87k $1.94k $1.95k $1.91k $1.85k $1.77k Present Value of 10-year Cash Flow (PVCF)= $17.33b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period.

Simply Wall St -

Does The Williams Companies, Inc.'s (NYSE:WMB) CEO Salary Compare Well With Others?

View our latest analysis for Williams Companies How Does Murray Armstrong's Compensation Compare With Similar Sized Companies? … The graphic below shows how CEO compensation at Williams Companies has changed from year to year. … On average over the last three years, The Williams Companies, Inc.

Simply Wall St -

Zooming in on NYSE:WMB's 5.4% Dividend Yield

(NYSE:WMB) be an attractive dividend share to own for the long haul? … Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. … In this case, Williams Companies likely looks attractive to investors, given its 5.4% dividend yield and a payment history of over ten years.

Simply Wall St -

Is The Williams Companies, Inc. (NYSE:WMB) A Financially Sound Company?

The size of The Williams Companies, Inc. … This article will examine Williams Companies’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Note that this information is centred entirely on financial health and is a high-level overview, so I encourage you to look further

Simply Wall St -

Introducing Williams Companies (NYSE:WMB), A Stock That Climbed 59% In The Last Three Years

By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … But it's far more plausible that the revenue growth of 6.4% per year is viewed as evidence that Williams Companies is growing. … In that case, the revenue growth might be more important to shareholders, for now, thus justifying a higer share price.

Simply Wall St -

With A Return On Equity Of 14%, Has The Williams Companies, Inc.'s (NYSE:WMB) Management Done Well?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … To keep the lesson grounded in practicality, we'll use ROE to better understand The Williams Companies, Inc. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is The Williams Companies, Inc.'s (NYSE:WMB) CEO Salary Justified?

In 2011 Murray Armstrong was appointed CEO of The Williams Companies, Inc. … This analysis aims first to contrast CEO compensation with other large companies. … How Does Murray Armstrong's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Could The The Williams Companies, Inc. (NYSE:WMB) Ownership Structure Tell Us Something Useful?

Generally speaking, as a company grows, institutions will increase their ownership. … Williams Companies is a pretty big company. … Taking a look at the our data on the ownership groups (below), it's seems that.

Simply Wall St -

Are The Williams Companies, Inc.'s (NYSE:WMB) Interest Costs Too High?

I will provide an overview of Williams Companies’s financial liquidity and leverage to give you an idea of Williams Companies’s position to take advantage of potential acquisitions or comfortably endure future downturns. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis … See our latest analysis for Williams Companies

Simply Wall St -

How Does The Williams Companies Inc (NYSE:WMB) Fare As A Dividend Stock?

The Williams Companies Inc (NYSE:WMB) has pleased shareholders over the past 10 years, by paying out dividends. … The company currently pays out a dividend yield of 5.4% to shareholders, making it a relatively attractive dividend stock. … Check out our latest analysis for Williams Companies

Simply Wall St -

WMB Company Info

Description

The Williams Companies, Inc. operates as an energy infrastructure company primarily in the United States. The company’s Northeast G&P segment engages in the natural gas gathering, compression, and processing business, as well as natural gas liquids (NGL) fractionation business in the Marcellus and Utica Shale regions in Pennsylvania, West Virginia, New York, and Ohio. Its Atlantic-Gulf segment operates Transco, a 9,900-mile interstate natural gas pipeline extending from Texas, Louisiana, Mississippi, and the Gulf of Mexico through Alabama, Georgia, South Carolina, North Carolina, Virginia, Maryland, Delaware, Pennsylvania, and New Jersey to the New York City metropolitan area. It is also involved in the operation of natural gas gathering, processing, and treating; crude oil transportation and production handling; and NGL fractionation assets within the onshore, offshore shelf, and deepwater areas in and around the Gulf Coast states of Texas, Louisiana, Mississippi, and Alabama. In addition, this segment operates various petrochemical and feedstock pipelines in the Gulf Coast region. The company’s West segment operates Northwest Pipeline, an interstate natural gas pipeline system that extends from San Juan basin in northwestern New Mexico and southwestern Colorado through Colorado, Utah, Wyoming, Idaho, Oregon, and Washington to a point on the Canadian border near Sumas, Washington. This segment is also involved in the operation of natural gas gathering, processing, and treating; and NGL fractionation and storage assets, as well as engages in the NGL and natural gas marketing businesses. The Williams Companies, Inc. was founded in 1908 and is headquartered in Tulsa, Oklahoma.

Details
Name: The Williams Companies, Inc.
WMB
Exchange: NYSE
Founded: 1908
$32,899,561,581
1,211,770,224
Website: http://www.williams.com
Address: The Williams Companies, Inc.
One Williams Center,
Tulsa,
Oklahoma, 74172,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE WMB Common Shares New York Stock Exchange US USD 02. Jan 1968
DB WMB Common Shares Deutsche Boerse AG DE EUR 02. Jan 1968
LSE 0LXB Common Shares London Stock Exchange GB USD 02. Jan 1968
Number of employees
Current staff
Staff numbers
5,322
Williams Companies employees.
Industry
Oil and Gas Storage and Transportation
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/24 23:47
End of day share price update: 2019/06/24 00:00
Last estimates confirmation: 2019/06/24
Last earnings filing: 2019/05/02
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.